A method for degumming and esterification of an oil comprising fatty acid glycerides, free fatty acids, and phospholipids comprises the steps of mixing the oil, a C1 to C5 monohydric alcohol, and methanesulfonic acid to form a reaction mixture, and heating the reaction mixture to esterify the free fatty acids and produce a fatty acid alkylester and water, and to degum the oil. The method further comprises the steps of causing a phase separation between a first phase comprising the C1 to C5 monohydric alcohol, phosphorous compounds, and water, a second phase comprising the fatty acid glycerides and the fatty acid alkylester, and a residual solid phase. Once the phase separation occurs, the second phase is separated from the first phase and the residual solid phase.